The South-South Zone of the Tax Appeal Tribunal holden in Benin has ordered MI Nigeria Limited to pay Bayelsa State Board of Internal Revenue the sum of N5,472,000.00 (Five Million, Four Hundred and Seventy-Two Thousand Naira only) Pay As You Earn of its staff for March 2021 to December 2021 and Bayelsa State Infrastructural Maintenance Levy due to the Appellant in accordance with the relevant tax legislation.
The tribunal led by Hon. Prof. Obehi Odiase-Alegimenlen unanimously ruled that if a taxpayer did not file its Return to the Tax Authority as required or refused to furnish the Tax Authority with available documents as requested, the Tax Authority has the power to resort to a Best of Judgement Assessment, and any assessment that has not been dully objected to within the stipulated 30 days period has become final and conclusive.
From facts, the Appellant- Bayelsa State Board of Internal Revenue had appealed upon being dissatisfied with the MI Nigeria Limited’s failure and refusal to file and pay the revised assessed tax liability in the sum of N5,472,000.00 (Five Million, Four Hundred and Seventy-Two Thousand Naira only) for Pay As You Earn of its staff whose principal place of residence is in Bayelsa State and Bayelsa State Infrastructural Maintenance Levy.
The Bayelsa State Board of Internal Revenue averred that the respondent has failed, refused and/or neglected to pay the assessed liabilities despite letters of notification, demand notices, letters of invitation and reports of administrative assessment, and urged the tribunal to grant the reliefs sought.
In defense, the Respondent- MI Nigeria Limited argued that the applicable PAYE taxes of the Respondent employees mentioned in the Bayelsa State Board of Internal Revenue letters for the years 2020 and 2021 respectively have been remitted to Rivers and Lagos State where the affected employees reside.
The company maintained that the Bayelsa State Board of Internal Revenue lacks the powers to levy PAYE tax on persons who are not tax residents in Bayelsa State because their workers worked in Bayelsa State for just 2 weeks.
In a well-considered judgment, the tribunal led by Hon. Prof. Obehi Adetokunbo Odiase-Alegimenlen as Chairman, Hon Dr. Ala-Peters David, Hon. Mrs. Hilda Ofure Ozoh, Hon. Barr. Ajoku Vitalis Friday and Hon. Prof. Otusanya Olatunde Julius as members held that the firm didn’t exhibit valid evidence to support their claim that the affected workers did not work more than 2 weeks in Bayelsa State as requested by the tax authority.
The tribunal in its ruling stated that by virtue of Section 58(1) of PITA 2011(as amended) any assessment that has not been dully objected to within the stipulated 30-day period has become final and conclusive.
The tribunal stated that it’s lawful for the Bayelsa State Board of Internal Revenue to call for records and information concerning those staff, and it’s the duty of the firm to furnish the Bayelsa Revenue Board with the required documents such as time sheets etc to show that such Employees did not work in that territory for more than two weeks as is been claimed.
The tribunal held that MI Nigeria Limited ignoring the Bayelsa State Board of Internal Revenue request does not help its case because it is trite law that a party who is in possession to produce evidence but fails to do so, it is deemed that his failure to produce same is an intended act because the evidence if so produced will be adverse to its case.
“Therefore, in our opinion, the window statutorily given to the Respondent to respond to the Administrative Assessment elapsed long before the Appellant even approached the Tribunal, and thus is statute barred and the Assessment has become Final and Conclusive.” The Tribunal ruled.
